Condos Could Be a Win for Today’s Buyers
Condos Could Be a Win for Today’s Buyers
Not every homebuyer wants the biggest house on the block. Some want something simpler, more affordable, and easier to maintain, especially in a market where every dollar counts. That’s where condos come in.
For first-time buyers, they can be a smart way to get into homeownership without stretching your budget. For downsizers, they offer less space to maintain, with the flexibility to stay in a great location.
And right now, condos are one of the most buyer-friendly parts of the market.
Condo Inventory Is Up, And That Means More Choice
According to the National Association of Realtors (NAR), there are 194,000 condos for sale right now. That’s the second highest amount we’ve seen in the last three years (see graph below):
Just remember, this is the national figure. The exact number is going to vary based on where you’re looking to buy. But, generally speaking, you have more options and less competition. In Ann Arbor right now, there are 140 condos for sale ranging in price from $174,900-$2,950,000 with a median price of $399,950, and an average of 85 days on the market. 25 of these units are new construction that range from $501,863-$2,858,000. If you’re looking for a good value, an existing condo in Ann Arbor is your best bet. See all Ann Arbor Condos currently for sale
You’re not stuck waiting for something to pop up or rushing into an offer just to beat someone else to it. You’ve got plenty to choose from. And if you’re particular about layout, location, or amenities, this is your chance to be selective. See Ann Arbor complex details
That’s a big shift from the market frenzy of just a few years ago. Compared to early 2022, we’ve got nearly double the condos available now. That gives you more breathing room to find the right fit.
Prices Are Cooling, and Buyers Hold More Negotiating Power
And since there are more for sale, many sellers are more open to negotiating right now. So, you may be able to get a better price. As Redfin explains:
“. . . condo buyers in many cities may be able to find sellers who are willing to give concessions and/or sell for less than their asking price.”
Condo prices are starting to ease in many markets. According to Intercontinental Exchange (ICE), condo prices dipped 1.3% in June compared to last year. And over half of the top 100 U.S. metros saw condo prices drop slightly year-over-year. Ann Arbor has seen a drop of 3.3% in the median price year-to-date and 1.5% decrease in the average sales price.
Data from Redfin shows what the recent dip in prices looks like (see graph below):
That doesn’t just help with affordability, it also shifts the power dynamic. Condo buyers in many markets are now in a position to negotiate on price and ask for concessions, like help with closing costs.
Bottom Line
Condos aren’t just a fallback option. In today’s market, they’re one of the most strategic ways to buy. With more options, softening prices, and more room to negotiate, now could be the right time to make your move.
Could a condo check more boxes than you expected? Let’s talk through your options and find out. Contact us today at The Bouma Group, Realtors at 734-761-3060 or info@condohotline.com.
Are We Heading into a Balanced Real Estate Market?
Are We Heading into a Balanced Market?
If you’ve been keeping an eye on the housing market over the past couple of years, you know sellers have had the upper hand. But is that going to shift now that inventory is growing? Here’s a breakdown of what you need to know.
What Is a Balanced Market?
A balanced market is generally defined as a market with about a five-to-seven-month supply of homes available for sale. In this type of market, neither buyers nor sellers have a clear advantage. Prices tend to stabilize, and there’s a healthier number of condos and homes to choose from. After many years, when sellers had all the leverage, a more balanced market would be a welcome sight for people looking to move. The question is – is that really where the market is headed?
After starting the year with a three-month supply of homes nationally, inventory has increased to four months. That may not sound like a lot, but it means the market is getting closer to balanced – even though it’s not quite there yet. It’s important to note this increase in inventory is not leading to an oversupply that would cause a crash. Even with the growth lately, there’s still nowhere near enough supply for that to happen.
The graph below uses data from the National Association of Realtors (NAR) to give you an idea of where inventory has been in the past, and where it’s at today:
For now, this is still seller’s market territory – it’s just not as frenzied of a seller’s market as it’s been over the past few years. As Mark Fleming, Chief Economist at First American, says:
“The faster housing supply increases, the more affordability improves and the strength of a seller’s market wanes.”
What This Means for You and Your Move
Here’s how this shift impacts you and the market conditions you’ll face when you move. Lawrence Yun, Chief Economist at NAR, explains:
“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
The graphs below use the latest data from NAR and Realtor.com to help show examples of these changes:
Homes Are Sitting on the Market Longer: Since more condos and homes are on the market, they’re not selling quite as fast. For buyers, this means you may have more time to find the right place. For sellers, it’s important to price your condo or house right if you want it to sell. If you don’t, buyers might choose better-priced options.
Sellers Are Receiving Fewer Offers: As a seller, you might need to be more flexible and willing to compromise on price or terms to close the deal. For buyers, you could start to face less intense competition since you have more options to choose from.
Fewer Buyers Are Waiving Inspections: As a buyer, you have more negotiation power now. And that’s why fewer buyers are waiving inspections. For sellers, this means you need to be ready to negotiate and address repair requests to keep the sale moving forward.
How a Real Estate Agent Can Help
But this is just the national picture. The type of market you’re in is going to vary a lot based on how much inventory is available. So, lean on a local real estate agent for insight into how your area stacks up.
Whether you’re buying or selling, understanding how the market is changing gives you a big advantage. We have the latest data and local insights, so you know exactly what’s happening and how to navigate it.
Bottom Line
The real estate market is always changing, and it’s important to stay informed. Whether you’re buying or selling, understanding this shift toward a balanced market can help. If you have any questions or need expert advice, don’t hesitate to reach out to us at The Bouma Group at 734-761-3060 or info@condohotline.com.
Ann Arbor Condo Report – December 2019
A Decline in Prices in All Domains
There has been a decrease in both listing and selling prices for monthly and year-to-date numbers for Ann Arbor condos. Firstly, there has been a 29.6% fall in the amount of entered inventory for the month of December with 19 units being added, compared to the 27 previously. The average listing price is $306,852, and this is a 18.8% decrease from the $306,852 last December. A total of 27 condos were sold this past month, versus the 30 prior, a 10% decline. Unfortunately for sellers, the average days on the market has decreased 43.2% from 37 to 53 days currently.
Like the numbers for December, the year-to-date statistics have also seen a decline in prices. The ALP is $332,687, which is a 5.5% decrease compared $352,094 from before. As well, the amount of new listings has also fallen from 778 to 736 condos, a 5.4% decrease. For sold inventory there has been a 3.2% increase, 539 condos previously and 556 for 2019. Considering all selling prices, the ASP has come to $284,727, and this is a minimal decline in comparison to $288,012 at this time prior.
For all of your condo quandaries and questions, contact condo experts with The Bouma Group at 734-761-3060 or email info@condohotline.com. Stay tuned for updated information about Ann Arbor condos!
Ann Arbor Condo Report – November 2019
Decrease in Sold Ann Arbor Condos
Ann Arbor condos have seen an overall decline in inventory, more prominently for the amount of sales. A total of 45 condos have been listed this past November, and this is a 21.1% decline from the 57 previously. The average listing price has also declined from $380,532 to $329,900, a 13.3% difference. There has been a 36.2% decrease in the amount of sold units, 47 November 2018 versus 30 recently. The average sale price is at $299,695 and this is a 21% increase compared to last November’s $247,715. As for the average days on the market, it is exactly the same at 38 days.
As for the year-to-date statistics, there has been a decrease in listings numbers but an increase for selling data. Thus far, 716 condos have been listed and this is a 4.5% decline compared to the 750 sold before. The ALP now is $333,598 versus $351,490 previously, a 5.1% decrease. As for the amount of sold inventory, 528 units have been sold and this is a 5.7% increase in comparison to the 509 last year at this time. Cumulatively, the ASP is $285,331 and this has risen minimally from the $283,492 prior.
The Bouma Group is here to help with all of your condo needs, you can contact the experts at 734-761-3060 or via email info@condohotline.com. Check back here for the latest news for Ann Arbor condos!
Ann Arbor Condo Report – June 2019
Equal Inventory Listed and Sold in June
Great news for sellers in the month of June, as 68 condos were listed and 68 were sold in Ann Arbor. Last June, 87 units were listed for sale, a 21.8% decline, and 53 were sold, 28.3% increase. The average listing price was $316,090 versus $353,306 in June 2019, a 10.6% decrease. As for the average selling price, there was a 5.3% increase from $283,620 to $298,525. Condominiums were usually on the market for 25 days.
The year-to-date statistics look decent in comparison to last year. 421 homes have been entered into the multiple listing service, a 3.2% increase from the 408 at this time in 2018. Only a slight decline compared to last year’s ALP, the ALP for half way through this year is $341,102. A grand total of 293 condos have been sold thus far, an increase of 21% from the 242 before. Overall, the ASP is $291,760 versus $280,807 last year at this time, a 4% rise.
For all of your condo needs and questions, contact the condominium experts with The Bouma Group at (734)761-3060 or email info@condohotline.com. Stay tuned on the Ann Arbor condo market by checking back here!
Ann Arbor Condo Report – December 2019
More Inventory with Higher Prices for Ann Arbor Condos
In December, Ann Arbor condos saw an increase in inventory listed and sold, as well as, prices that were higher in contrast to 2017. Although low in comparison to November’s inventory, both the amount of listings and sales increased in comparison the December 2017 and more units were sold than listed in. A mere total of 27 condos were entered into the multiple listings service last month, but this is a 42.1% increase from the 19 condos entered the prior year in December. The average listing price experienced a significant 60.5% rise from $235,319 to $377,824 now. 30 condos were sold, meaning that 3 more condos were sold than were listed; further, this is a 11.1% increase compared to December 2017. Unfortunately for seller’s, the ALP was below the ASP which was $347,406, versus the ASP in the previous year which was $223,741, a considerable 55.3% difference. The average days on the market exceeded one month at 37 days.
Being the final report for the year 2018, we will now look at the total statistics for the year. A total of 778 condos were listed this past year, exceeding the 698 last year for an 11.5% jump. Cumulatively, the average listing price was $352,094 in comparison to the $295,521 in 2017, an increase of 19.1%. Comparative to both 2018’s listing price and 2017’s selling price, 2018’s ASP was below both; $288,012 was the ASP which was a 13.5% decline from 2017.
For all of your condominium quandaries and questions, contact the specialists with The Bouma Group at 734-761-3060 or email info@condohotline.com. Keep up with our blog for all of the information you need to know about Ann Arbor condos and surrounding areas!